Xia Corporation is a company whose sole assets are $5100,000$ in cash and three projects thar it will undertake. The projects are risk$-$free and have the following cash flows:Xia plans to invest any unused cash today at the risk$-$free interest rate of $1096.$ In one year, all cash will be paid to investors and the company will be shut down$\mathrm{.}2.$ What is the NPV of each projoa? Which projects should Xia undertake and how mach cash should it retain?b$.$ What is the total value of Xias asets $($projects and cash$)$ today?c$.$ What cash flows will the investors in Xia reccive? Based on these cash flows, what is the value of Xia today?d$.$ Suppose Xia pays any unused cash to investors today, rather than investing it$.$ What are the cash flows to the invotors in this case? What is the value of Xia now?c$.$ Explain the relationship in your answens to parts $(6),($c$),$ and $($d$).$

Xia Corpocation is a company whose sole assets are $$100,000$ in cash and three projecas that it will undertake. The projects are risk$-$free and have the following cash flows

$\backslash$table$[[$Project$,\backslash$table$[[$Cash Flow$],[$Today $($$$)]],\backslash$table$[[$Cash Flow$],[$in One Year $($$$)]]],[$A$,-20,000,30,000],[$B$,-10,000,25,000],[$C$,-60,000,80,000]]$

Xia plans to invest any unused cash today at the risk$-$free interest rate of $10\%.$ In one year, all cash will be paid to investors and the company will be shut down. ash should it retain?

b$.$ What is the total value of Xia's assets $($projects and cash$)$ today?

c$.$ What cash flows will the investors in Xia reccive? Based on these ca hh flows, what is the valuc of Xia today?

d$.$ Supposc Xia pays any unused cash to investors today, rather than inveating it$.$ What are the cash flow to the investors in this cave What is the value of Xia now?

c$.$ Explain the relationship in your answers to pars $($b$),($c$),$ and $($d$).$